Global investment-grade corporates: fundamentals still strong

Despite tight valuations, global investment-grade corporate fundamentals remain robust as we head into 2025. The profitability and leverage of major issuers in both the US and Europe reflect a strong post-pandemic recovery, though differences are emerging between regions and sectors. As AI investments, industrial trends, and consumer behaviour evolve, companies face new opportunities and risks. Investors will need to watch closely for signs of potential strain, particularly in the automotive sector and among lower-end consumers, where early signs of weakness are beginning to appear. Read...